Australians derive their income from a variety of sources including their own unincorporated business, investments, superannuation and government payments, but the most common source is from Wages and salaries.

This article presents selected data on estimates of personal income for people whose main (or principal) source of income was Wages and salaries. The estimates have been compiled using aggregated individual income tax data from the Australian Tax Office (ATO). The ABS wishes to acknowledge the invaluable support of the ATO in compiling these statistics.

Small area statistics on personal income are also available from the Census of Population and Housing. The benefits of using the ATO data are that they are available annually, rather than once every five years, and provide estimates of different sources of income, in addition to total income.

This article illustrates ways in which these data can be used to explore regional variation in income:

Firstly, the article provides an overview of the growth in average Wage and salary income from 2001-02 to 2005-06, with some discussion of the variation in average annual growth rates between states and territories.

Secondly, the article highlights the SLAs with the highest average Wage and salary incomes in 2005-06, and describes some of the characteristics of Wage and salary earners in those regions.

The analysis presented here represents only some of the data available in the spreadsheets accompanying this article. Other data available include age and sex characteristics of Wage and salary earners, more detailed occupation data and data for other geographic levels including local government areas.

From 2001-02 to 2005-06, the Australian economy grew at an average annual rate of 7.1% (annual Gross Domestic Product in current prices, Australian System of National Accounts, 2007-08 (cat. no. 5204.0)). In the same period, the average annual growth rate of Australian Wages and salaries was 4.2%.

Table 1 shows that while the Australian Capital Territory had the highest average income from Wages and salaries in each of the five years, Western Australia had the highest average annual growth rate at 5.3%.

Table 1. Growth in Average Annual Wages and Salaries, by State/Territory

Average Annual Wage and Salary Income ($)

State/Territory

2001-02

2002-03

2003-04

2004-05

2005-06

Average annual growth rate (%)

New South Wales

38,193

39,607

41,407

43,245

44,896

4.1

Victoria

35,894

37,198

38,754

40,393

41,782

3.9

Queensland

32,993

34,292

35,917

37,569

39,629

4.7

South Australia

32,933

34,165

35,685

37,166

38,422

3.9

Western Australia

34,788

36,386

38,284

40,499

42,804

5.3

Tasmania

31,343

32,407

33,847

34,959

36,388

3.8

Northern Territory

36,817

38,257

40,027

42,708

44,049

4.6

Australian Capital Territory

40,828

42,635

44,664

47,875

48,812

4.6

Australia

35,782

37,144

38,820

40,585

42,250

4.2

While these data show the overall growth rate of Wage and salary income across Australia, there was also some variation within states and territories. Regional variation in average Wage and salary income growth rates are influenced by a range of factors including the types of industries that are prevalent in an area, and the types of occupations people hold.

Table 2 shows the average annual growth rates of average Wage and salary incomes in capital city Statistical Divisions (SD) and in the balance of state/territory for each state and territory in the period 2001-02 to 2005-06.

Table 2. Average Annual Growth in Average Wage and Salary Income, 2001-02 to 2005-06

Capital City SD

Balance of State/Territory

State/Territory

State/Territory

%

%

%

New South Wales

4.2

4.1

4.1

Victoria

3.9

3.8

3.9

Queensland

4.6

4.8

4.7

South Australia

3.9

3.8

3.9

Western Australia

5.3

5.3

5.3

Tasmania

3.9

3.8

3.8

Northern Territory

4.8

4.1

4.6

Australian Capital Territory

4.6

5.4

4.6

Table 2 shows that, with the exception of the Northern Territory and the Australian Capital Territory, growth rates of average Wage and salary incomes were similar in the capital cities and the balance of the state or territory.

The ten SLAs with the highest average Wage and salary income across Australia in 2005-06 were all located within capital city SDs. Of these seven were located in Sydney SD. In all of the SLAs, the proportion of Wage and salary earners in Manager and Administrator or Professional occupations was greater than 49%. The proportion of Wage and salary earners in these occupations for each state and territory was between 24% and 30%.

Mosman was the highest average Wage and salary income SLA in Australia, with an average annual Wage and salary income of $100,177. This was around $17,500 higher than the next highest SLA, Hunter's Hill.

Seven of the top ten average Wage and salary income SLAs in 2005-06 were in the top ten in each year from 2001-02 to 2005-06. Six of these, Mosman (A), Woollahra (A), Hunters Hill (A), Ku-ring-gai (A), North Sydney (A) and Lane Cove (A), were in the Sydney SD. The seventh was Bayside (C) - Brighton in Melbourne SD.

Table 3. Top 10 Average Wages and Salaries for Australian SLAs, 2005-06

OCCUPATIONAL CHARACTERISTICS OF HIGH AVERAGE WAGE AND SALARY INCOME REGIONS, 2005-06

While the top ten SLAs across Australia were all in capital city SDs, in some states and territories the SLAs with the highest average incomes from Wages and salaries were outside of capital cities. For example, in 2005-06 the highest average Wage and salary income for Queensland was in Broadsound (S) ($61,932), for SA it was in Roxby Downs (M) ($57,918), and for Northern Territory, Groote Eylandt had the highest average Wage and salary income ($61,295). All of these SLAs are remote from urban centres and according to 2006 Census data, they all had high proportions of Wage and salary earners who were Employees not owning their own business and also working in the Mining industry. In Broadsound (S) and Roxby Downs (M) 50% of Employees were employed in the Mining industry, while the proportion in Groote Eylandt was 36.2%.

Hobart (C) - Remainder in Greater Hobart SD ($42,585) and Forrest in Canberra SD ($63,851) had the highest average Wage and salary incomes for Tasmania and the Australian Capital Territory.

This section identifies SLAs for each state and territory with the highest average incomes from Wages and salaries in capital city SDs and (except for the Australian Capital Territory) in the balance of each state or territory. The occupations of Wage and salary earners in these SLAs are also identified. The data show that in capital cities, occupations held in high Wage and salary income SLAs were mainly Professional, while in SLAs outside of the capital city SD there were greater proportions of earners in other occupations such as Tradespersons and related workers, and Production and transport workers.

Table 4. Wage and salary earners, by occupation, New South Wales, 2005-06

Occupation (%)

Top 5 SLAs

Average Wage & Salary Income ($)

Manag-ers and Admini-strators

Profess-ionals

Associ-ate Prof-ession-als

Trades-personsandRelated Workers

Advanc-edClericalandService Workers

Int.Clerical, SalesandService Workers

Int.Product-ion and Transport Workers

Elem. Clerical, SalesandService Workers

Labour-ers and Related Workers

NotStated

Sydney SD(a)

Mosman (A)

100,177

23.3

28.2

8.5

2.3

4.5

13.8

1.0

4.5

1.5

12.3

Hunter's Hill (A)

82,699

20.9

28.3

7.3

3.8

4.4

15.6

1.5

5.9

2.5

9.9

Woollahra (A)

80,568

21.3

30.4

8.3

2.6

4.4

14.5

0.9

5.2

1.8

10.7

Ku-ring-gai (A)

72,643

19.0

31.9

6.5

2.9

4.1

14.4

1.0

7.1

1.7

11.3

North Sydney (A)

71,266

19.3

33.4

8.0

2.5

4.2

13.9

1.1

4.3

1.5

11.8

Sydney SD

47,911

10.8

20.9

7.2

8.3

3.3

17.7

5.8

8.4

7.5

10.2

Balance of NSW(a)

Singleton (A)

50,801

5.9

12.1

6.1

16.4

1.9

13.4

18.1

9.4

9.5

7.3

Muswellbrook (A)

47,803

6.1

11.0

7.3

16.8

1.6

14.9

14.1

8.4

13.0

6.7

Queanbeyan (C)

46,984

7.0

15.6

7.8

9.3

2.1

18.3

5.5

8.9

6.5

18.9

Palerang (A) - Pt A

46,957

8.1

16.9

7.8

9.3

2.1

19.5

5.5

8.0

6.0

16.8

Cobar (A)

45,838

4.8

12.9

5.5

15.8

1.3

14.4

18.6

8.0

12.7

5.8

Balance of NSW

37,609

7.2

16.8

6.4

11.9

2.2

17.1

7.6

10.5

11.7

8.5

New South Wales

44,896

9.6

19.5

6.9

9.5

2.9

17.5

6.4

9.1

8.9

9.6

(a) SLAs with 100 or more Wage and salary earners.

In Sydney SD, the five SLAs with the highest average income from Wages and salaries all had high proportions of Managers and administrators, and Professionals. Together these occupations accounted for 49% or more of Wage and salary earners.

The SLAs in Balance of NSW with the highest average annual Wage and salary income were Singleton (A) and Muswellbrook (A), both located in the Hunter SD. These SLAs had a significantly higher proportion of Wage and salary earners employed in Tradesperson and related worker, and Intermediate production and transport worker occupations than did the Balance of NSW or the state as a whole. Additionally, Census data for 2006 show that Mining is the highest industry of employment in Singleton (A) and Muswellbrook (A). These regions are well known for their coal mining activity. Cobar (A) in North Western SD has a similar occupational and industry employment profile. Cobar (A) is known for copper, zinc, lead, silver and gold mining.

Queanbeyan (C) and nearby Palerang (A) - Pt A in South Eastern SD had higher proportions of persons in Professional and Intermediate clerical, sales and service worker occupations than did the other top five SLAs in Balance of NSW. While located in NSW, these areas are in commuting distance of Australia's Capital City, Canberra.

Like Sydney SD, the five SLAs with the highest average Wage and salary incomes in Melbourne SD had high proportions of earners in Manager and administrator and Professional occupations, ranging between 48% and 52%. In these SLAs the proportion of Wage and salary earners employed in Intermediate production and transport worker occupations was significantly lower than for the whole of Melbourne SD.

Macedon Ranges (S) Bal, in Loddon SD, and Newtown in Geelong City, part of Barwon SD, were the two SLAs with the highest average Wage and salary income outside of Melbourne SD in 2005-06. Both SLAs are located within commuting distance of the Melbourne central business district. Geelong is also home to a major car manufacturing plant and a university campus. The occupational profile of Wage and salary earners in these SLAs followed a similar pattern to SLAs in Melbourne SD, with proportions of persons in Professional occupations well above the proportion for the state.

Latrobe (C) - Traralgon and Latrobe (C) Bal are located in Gippsland SD. The proportions of Wage and salary earners in Tradesperson and related workers, and Intermediate production and transport worker occupations in these SLAs was greater than the proportion in the same occupations for Victoria. Major industries of employment in Latrobe (C) Traralgon and Latrobe (C) Bal, as indicated by the 2006 Census, were Manufacturing and Retail trade. The Electricity, gas, water and waste services industry was also prominent in Latrobe (C) Bal. A paper mill and several coal-fired power stations are located in Latrobe.

The five SLAs in balance of Queensland with the highest average annual Wage and salary income were all located in Mackay and Fitzroy SDs. The major industry in Broadsound (S), Belyando (S) and Nebo (S) SLAs in Mackay SD, is coal mining. At the 2006 Census, between 37% and 50% of Wage and salary earners who were Employees not owning their own business were employed in the Mining industry. In Duaringa (S) and Peak Downs (S) SLAs in Fitzroy SD, the major industries include coal mining, and wheat, sorghum and beef farming. Again, 2006 Census data showed that these SLAs had high proportions (more than 35%) of Employees who did not own their own business and were employed in the Mining industry.

The most prominent type of occupation for Wage and salary earners in these SLAs was in Intermediate production and transport worker, accounting for more than 24% of Wage and salary earners. This compares with 7.2% of Wage and salary earners in Intermediate production and transport worker occupations for Queensland.

In 2005-06, the top five average Wage and salary earning SLAs in balance of South Australia included Roxby Downs (M) in Northern SD. Minerals are mined in the region, including copper, uranium, gold and silver. The greatest proportion of Wage and salary earners in Roxby Downs (M) were in Tradesperson and related worker, and Intermediate production and transport worker occupations. Seventeen percent of Wage and salary earners were Tradesperson and related workers, compared with 9.7% for South Australia. Sixteen percent were Intermediate production and transport workers, compared with 6.5% for the state. Whyalla (C), also in Northern SD, is best known for steel manufacturing and this is supported by 2006 Census data, with 24.8% of Employees not owning their own business working in the Manufacturing industry. Like Roxby Downs, Whyalla also had higher proportions of Tradespersons and related workers and Intermediate production and transport workers than did South Australia.

The economies of Ashburton (S) and East Pilbara (S) in Pilbara SD, and Coolgardie (S) in the Kalgoorlie region of South Eastern SD, are reliant upon the mining industry. More than 42.7% of Employees not owning their own business were employed in the Mining industry at the 2006 Census. Like other areas where mining is prominent, all of these SLAs had large proportions of Wage and salary earners in Tradesperson and related worker, and Intermediate production and transport worker occupations. Proportions of Wage and salary earners in these occupations in Roebourne (S) and Port Hedland (T), also in Pilbara SD, were not as high, but still greater than, the proportion for Western Australia. Roebourne and Port Hedland are major ports for exporting the iron ore, salt and natural gas mined and processed in the Pilbara region.

West Coast (M) in Mersey-Lyell SD is characterised by mining and tourism industries. The 2006 Census found that 27.2% of Employees not owning their own business in the SLA were employed in the Mining industry, and 16.5% were employed in the Accommodation and food services industry. The greatest number of Wage and salary earners in West Coast (M) SLA were in Tradesperson and related worker, Intermediate production and transport worker, and Labourer and related worker occupations.

Launceston (C) - Inner is part of Greater Launceston SSD in Northern SD. According to 2006 Census data, Retail trade, and Accommodation and food services were two of the largest industries of employment in Launceston (C) - Inner at 23% combined. Launceston is the second largest population centre in Tasmania after the capital, Hobart, and is the main service and retail centre for northern Tasmania. As such, the area had a greater proportion of people in Professional occupations than other SLAs outside of capital city SDs. Tourism is an important industry for Launceston, and close to a fifth of Wage and salary earners in Launceston (C) - Inner were in Intermediate clerical, sales and service worker occupations in 2005-06.

The top three Wage and salary earning SLAs in the Northern Territory were all in remote regions outside of the capital city SD. These SLAs are home to different types of large mining operations. Groote Eylandt in East Arnhem SSD is the location of a large manganese mining operation. The most important industry for Nhulunbuy, also in East Arnhem SSD, is bauxite mining. The occupational profiles of both Groote Eylandt and Nhulunbuy differed from other SLAs with high Wage and salary income, in that there are relatively large proportions of Wage and salary earners spread across five occupational groups: Professionals, Tradespersons and related workers, Intermediate clerical, sales and service Workers, Intermediate production and transport Workers, and Labourer and related workers. Other high average income SLAs had concentrations of Wage and salary earners in one or two occupations only.

Jabiru in Alligator SSD is well known for uranium mining and is also a commercial and accommodation hub for tourists visiting Kakadu National Park. The proportion of persons in Professional occupations in Jabiru SLA, 23.1%, was substantially higher than in other SLAs of the Northern Territory, including those in Darwin. Clerical sales and service workers were also a significant part of the occupational profile of Jabiru.

The Australian Capital Territory had the highest average Wage and salary income of all the states and territories. Professionals and Intermediate clerical, sales and service workers constituted 40% or more of all Wage and salary earners in the top five Wage and salary earning SLAs in Canberra SD. Consequently, proportions of Wage and salary earners in other types of occupations were very low, particularly Tradesperson and related workers (3% or less), Intermediate production and transport workers (less than 1.5%) and Labourers and related workers (less than 2.5%).

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.